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Apple Partner Wistron has set a goal of having half of their Supply Chain Production move Outside China

 

A report out of Taiwan today stated that Apple iPhone maker Wistron will have actively expanded its non-mainland production capacity by 25% by the end of 2020 and will double that to 50% by the end of 2021.

 

Lin Xianming attended the “Inventing Tomorrow” summit forum hosted by the Foundation yesterday as the chairman of the Times Foundation. After the meeting, he put forward his views on the US presidential election, changes in the supply chain under the epidemic, and Wistron’s production capacity layout.

 

To prevent political risks from trade wars and additional tariffs, Wistron is actively expanding non-mainland overseas bases at the request of brand customers. It has set a goal of overseas production capacity accounting for 25% of global production capacity by 2020, and half the production capacity between mainland and non-mainland China by 2021.

 

However, the epidemic has impacted the global economy and affected the progress of many companies building factories. Wistron currently has plans to expand or add new bases in Mexico, Vietnam, India, and Malaysia, and is also looking for new production bases in Taiwan and the United States, especially if President Trump wins re-election.

 

Lin Xianming pointed out that the epidemic has caused difficulties in the implementation of the expansion of the factory, but Wistron is still proceeding according to the schedule.

 

Wistron originally planned to add a new base in the United States, but due to the severe local epidemic they have chosen to first open in Taiwan where the epidemic has been mild.

 

The US presidential election will be held in early November, which could affect future changes in US-China relations and the layout of the supply chain.

 

Lin Xianming analyzed that the US-China relationship has fundamentally changed, so the long-term supply chain is going global, and the overall risk control will not change.

 

It’s amazing how a strong Pro-American stance from the U.S. President can easily push more jobs for laborers back to the U.S.

 

10.2  Supply Chain News & Rumors

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